Practice Exercise 12

On March 15, 2020,SplishCorporation entered into a forward contract with the local bank to purchase 122,000(RMB) for $24,400Canadian dollars in two months' time. On March 31,Splish's year-end, the fair value of the forward contract (representing the present value of the contract's future cash flows) was $470.

Prepare the journal entries on March 15 and March 31, 2020.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

March 15, 2020

March 31, 2020

March 15, 2020

March 31, 2020